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HomeMy WebLinkAbout05/18/2021________________________________________________________________ S:\Council Committees\2021\Personnel\05_May\May 18 ASR.docx Page 1 CH:mc Committee Members Staff: Chris Huot Councilmember, Ken Weir, Chair Assistant City Manager Councilmember, Bruce Freeman Councilmember, Patty Gray SPECIAL MEETING OF THE PERSONNEL COMMITTEE Tuesday, May 18, 2021 12:00 p.m. City Hall North – Conference Room A 1600 Truxtun Avenue Bakersfield, CA 93301 AGENDA SUMMARY REPORT Meeting called to order at 12:05 p.m. 1.ROLL CALL Committee members Present: Councilmember, Ken Weir, Chair Councilmember, Patty Gray Councilmember, Bruce Freeman, participated telephonically City staff: Christian Clegg, City Manager Chris Huot, Assistant City Manager Joe Conroy, Public Information Officer Brianna Carrier, Administrative Analyst Nathan Gutierrez, Management Assistant Michelle Cruz, Management Assistant Josh Rudnick, Deputy City Attorney Christi Tenter, Human Resources Director Mari Blowers, Benefits Supervisor Kim Gearheart, Benefits Technician Retired employee & BCARE: Margaret Ursin Others present: Members of the Public 2.ADOPTION OF AUGUST 18, 2020 AGENDA SUMMARY REPORT A motion to receive and file the Personnel Committee’s August 18, 2020 Agenda Summary Report was approved. /s/ Chris Huot ________________________________________________________________ S:\Council Committees\2021\Personnel\05_May\May 18 ASR.docx Page 2 CH:mc 3.PUBLIC STATEMENTS There were no public statements. 4.NEW BUSINESS A.CalPERS Cost Projection and Other Post Employment Benefit Status Update – Huot/McKeegan Assistant City Manager Huot introduced Finance Director McKeegan who provided an overview of the City’s CalPERS cost projections including the current pension plans, actuarial reports, long range financial model, and other post-employment benefits by way of a PowerPoint presentation in response to inquiries made by several Council Members during their March 17, 2021 City Council meeting. Key points of his report are: CalPERS nation’s largest public pension fund with 2 million participants o 31% State members, 31% Public agency members, 38% School members As of June 30, 2020, CalPERS is 70.6% funded (assuming a 7% discount rate) Local Pension Reform – Measure D approved by voters in November 2010 o Affected Public Safety Employees hired after January 1, 2011 o Reduced maximum benefits formula & o Eliminated employer paid member contributions (EPMC) State Public Employee Pension Reform Act (PEPRA) o Affected employees hired after January 1, 2013 o Reduced maximum benefits formula and pensionable compensation o 50% of normal cost covered by employee o Eliminated EPMC o Final compensation based on highest 36 consecutive months Three pension plans with different tiers and formulas o Miscellaneous Unit 3% at age 60 for employees hired before 08/20/2008 2.7% at age 55 for employees hired after 08/20/2008 but before 1/1/2013 2% at age 62 for PEPRA employees hired after 1/1/2013 o Fire Unit 3% at age 50 for employees hired before 1/1/2011 2% at age 50 for Measure D employees hired after 1/1/2011 but before 1/1/2013 2.7 at age 57 for PEPRA employees hired after 1/1/2013 o Police Unit 3% at age 50 for employees hired before 1/1/2011 2% at age 50 for Measure D employees hired after 1/1/2011 but before 1/1/2013 2.7% at age 57 for PEPRA employees hired after 1/1/2013 2021 Actuarial Reports total accrued liability total $1.44 billion as of 06/30/2019 o $465.8 million unfunded liability Hypothetical Termination Liability to Exit CalPERS o Based on Treasury Yield discount rate of 2-3% Long Range Fiscal Model improves projections of costs out to FY 2040 o Includes multiple scenarios (i.e. discount rates & investment returns) o Includes calculations for vacancies & reduction of EMPC ________________________________________________________________ S:\Council Committees\2021\Personnel\05_May\May 18 ASR.docx Page 3 CH:mc Additional Funding Options o Section 115 Trust (Pension Rate Stabilization Fund) Other Paid Employer Benefits o Retiree Medical Liability – 42% subsidy of PPO premium Program closed to employees hired after 2006 757 retirees receiving benefit; 513 active employees eligible upon retirement City Manager Clegg added that the new Long Range Fiscal Model will assist the city in projecting future costs associated with additional positions to the City’s compliment. Committee Chair Weir asked staff to provide further information regarding the OPED liability increases between 2014 and 2016. Committee member Gray made a motion to receive and file the report. The motion was unanimously approved. 5.COMMITTEE COMMENTS There were no comments. 6.ADJOURNMENTThe meeting was adjourned at 1:20 pm